Banking & Finance

PM: Banking sector supporting economic growth

The Asian Banker Summit hears PM and SBV Governor discuss the key role the banking sector plays in Vietnam's development.

by Hung Nguyen

The Asian Banker Summit 2016 was held in Vietnam from April 10 to April 25, organized by the State Bank of Vietnam (SBV) and The Asian Banker.

In his opening address Prime Minister Nguyen Xuan Phuc said that over the last 30 years Vietnam has pursued a comprehensive economic reform path and its accomplishments include recording average growth of 6.6 per cent per annum, becoming a middle-income country, and establishing an economy operated under market mechanisms. The banking sector, he said, has played a role as a pioneer in supporting the economy as a whole.

Vietnam is actively integrating more deeply into the global economy, with the ASEAN Economy Community (AEC), free trade agreements (FTAs) and the TPP to bolster the process further. In order to maximize the opportunities, the PM said, Vietnam will continue to implement comprehensive economic reform. The banking sector needs to continue to reorganize its weaker financial institutions and handle bad debts while bringing management and protocols to international standards.

SBV Governor Le Minh Hung told the opening ceremony that after five years of reform the picture of the banking sector has changed in a positive manner. The sector has contributed to the country’s stable macro-economic conditions and support economic growth.

The banking sector must view international integration as an opportunity, Mr. Hung said, driving local financial institutions towards increasing their efficiency and competitiveness. “In the time to come Vietnam’s banking sector will continue to reform, integrate into international financial systems, increase its capacity, and apply international standards to secure a fair business environment for foreign investors,” he added.